Project ID: 979

China Eximbank provides $233 million USD preferential buyer’s credit for South Kordofan 220kV Power Transmission and Distribution Project (Linked to #1007, Umbrella #57039)

Commitment amount

$ 281611525.2

Constant 2017 USD

Summary

Funding agency [Type]

Export-Import Bank of China [State-owned Policy Bank]

Recipient

Sudan

Sector

Energy (Code: 230)

Flow type

Export Buyer's Credit

Concessional

Yes

Category

Intent

Mixed (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Implementation (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2010

Description

On 29 July 2008, China Eximbank and the Government of Sudan signed a $3 billion USD oil-backed master framework agreement (or line of credit) to finance various infrastructure projects (see Umbrella Project ID#57039). This resources-credit cooperation package is backed by future revenues from the sale of oil exports. Each subsidiary buyer’s credit loan (BCL) issued through the framework agreement carries a 15-year maturity and 5.6% interest rate.On 4 April 2010, China Eximbank reportedly agreed to finance a $274 million USD South Kordofan 220kV Power Transmission and Distribution Project through this non-concessional master framework agreement. However, on 8 October, 2010, China Eximbank and the Government of Sudan signed a $233 million USD preferential buyer’s credit (PBC) agreement for this project, which carried a different set of concessional borrowing terms: a 15-year maturity and 3% interest rate. The proceeds from this PBC were used to partially finance the $274 million USD commercial contract signed 4 July 2009 between China National Machinery Import and Export Corporation (CMC) and the National Electricity Corporation (NEC) of Sudan, a state-owned power utility.The project involved the construction of an electricity transmission line than runs from the city of El-Obeid (in central Sudan within North Kordofan State) to a power plant in Al-Fulah (or al-Fula or EI Fula or الفولة) in West Kordofan State. The 405 MW Al-Fulah Gas-Fired Power Plant Construction Project was funded through a separate China Eximbank BCL (see Project ID#1007). The ultimate goal was to supply power to Northern and Southern Kordofan and the western region of Darfur. The project did reach the implementation phase, but it is unclear if and when the project was completed.

Additional details

This project is also known as the Al-Fula Electricity Network Project. The Chinese project title is 南科尔多凡输变电项目 or 苏丹南科尔多凡输变电项目 (See: 中苏签订南科尔多凡输变电项目贷款协议). The Arabic project title is مشروع جنوب كردفان or لتمويل مشروعتوزيع ونقل الطاقة بجنوب كردفان.

Number of official sources

12

Number of unofficial sources

4

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Details

Cofinanced

No

Receiving agencies [Type]

Government of Sudan [Government Agency]

Implementing agencies [Type]

China National Machinery and Equipment Import & Export Corporation [State-owned Company]; Sudan National Electricity Corporation (NEC Sudan) [State-owned Company]

Loan type

Concessional

Maturity

15 years

Interest rate

3.0%

Grant element

32.21312671%

Gurarantee provided

No

Insurance provided

No

Collateralized/securitized

Yes

Collateral

Future revenues from the sale of oil exports